Best-in-Class

Community-Scale

Biomass Systems

Case Study Series

Biomass Energy in Vermont:

Opportunities, Issues & Challenges

Efficiency Vermont Better Buildings by Design Conference

February 9, 2011

Andrea Colnes, Policy Director Biomass Energy Resource Center

Efficiency Vermont is a Registered Provider with The American

Institute of Architects Continuing Education Systems (AIA/CES).

Credit(s) earned on completion of this program will be reported to

AIA/CES for AIA members. Certificates of Completion for both AIA

members and non-AIA members are available upon request.

This program is registered with AIA/CES for continuing professional

education. As such, it does not include content that may be deemed

or construed to be an approval or endorsement by the AIA of any

material of construction or any method or manner of handling, using,

distributing, or dealing in any material or product.

Questions related to specific materials, methods, and services will be

addressed at the conclusion of this presentation.

Learning Objectives

At the end of this program, participants will be able to:

Discuss Austria’s approach to change use of biomass technology

Be Exposed to tools used to revolutionize use of renewable biomass

technology

Have a general understanding of Vermont’s current biomass landscape

Course Evaluations

In order to maintain high-quality learning experiences, please access

the evaluation for this course by logging into CES Discovery and

clicking on the Course Evaluation link on the left side of the page.

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series Local Energy –

A new way to look at the relationship between

communities and forests

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series Why Woody Biomass is a Good Energy Choice for the Northeast

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series

Approximately one third of US energy consumption is Thermal

Transportation 28.8

Electric Power 39.6

Thermal/Other 31.1

Transportation

Electric Power

Thermal/Other

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series

Comparative Cost of Heat

$17.06

$38.39

$30.07

$19.49 $19.48

$8.70

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

Natural Gas Oil Propane Wood Pellets Cordwood Wood Chips

Heating Fuel Price Comparison - $/MMBtu NaturalGas

Oil

Propane

WoodPellets

Cordwood

WoodChips

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series

Vermont’s Forest Resource

• 78% forested

• 4.5 million acres of forestland

• 86% private ownership

• 477 million green tons of live biomass inventory on all 4.4 million acres of timberland*

• 10 million green tons of annual growth of new wood on all timberland acres

• Current growth in excess of removals

* Excludes stumps, roots, foliage, standing dead trees, and seedlings and saplings

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series

Biomass Energy in Vermont: Current Demand & Proposed Projects

Electric Generation

- Mc Neil: 50MW 500,000

-Ryegate: 20MW 250,000 - North Springfield 300,000

-Fairhaven 300,000

-Pownal 300,000

- Gilman150,000

- Others ….

Heating - Residential: 700,000

-41 Schools: 25,000 tons

- Middlebury College (20,000),

Green Mountain College (5,400),

Bennington College (4,000), State

Office Complexes (6,500), North

Country Hospital (3,000), NRG

Systems (25)

District Energy - Montpelier: 15,000

- Randolph: 12,000

- Middlebury: 29,000

-Brattleboro: 32,000

-Burlington: none

Pellet Mills -Vermont Wood Pellet (North

Clarendon) 20,000 -Vermont Biomass Energy (Island

Pond) 200,000

-Vermont Pellet Works (Lyndonville)

150,000

All in Green Tons (approximate amounts)

Green – existing projects

Red – proposed projects

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series The Challenge

Will Vermont become a leader in

the innovation, production, and

sustainable use of biomass

energy, biofuels, and bioproducts

created from local wood and

agricultural resources?

Or, will the shift from a fossil-

based economy to a bio-based

economy lead to exploitation of

biomass in a boom-and-bust

cycle that does not sustain our

region’s economy, communities,

energy supply, agricultural base

or forests on a long-term basis?

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series

Northern Forest Biomass Energy Action Plan

2007 Collaboration, 40 Endorsers

Purpose: “To explore the potential for woody

biomass from the Northern Forest to

provide an increased source of

renewable, sustainable energy for the

region, and to determine what needs

to happen in the region for that

potential to be realized.”

Convened by BERC, the Northern

Forest Center, and the Carsey Institute

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series Vision and Principles for Community Scaled Biomass Energy

Sustainable Forestry – to keep the forest healthy and

ensure overall ecological integrity and function

Maximized Efficiency – to ensure the energy value of

biomass is utilized as fully and cleanly as possible

Local Energy – to use local wood resources for community

and regional needs and keep investment and returns local

Energy Security – to provide communities with a stable,

affordable clean, and locally produced source of energy

Climate Change Mitigation – to reduce net carbon

emissions and increase carbon sequestration through

sustainable biomass energy

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series

Wood Supply Biomass energy applications must be consistent with a reliable and sustainable wood supply

2010 Revised Study

Scenario

Vermont Counties

(Green Tons NALG Wood)

Total 24 County Area

(Green Tons NALG Wood)

Conservative 246,800 1,332,400

Moderate 894,900 3,107,600

Intensive 1,940,700 5,822,500

Forestland Area and

Ownership Data

Updated Forest

Inventory and

Composition Data

Forest Growth and

Mortality Data

Current Forest

Harvesting Data

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series Sustainable Harvesting: Removals must be consistent with long-term forest health and productivity through an integrated approach

Options:

- Biomass Harvesting Guidelines or Standards - Forest Guild Retention and Harvesting Guidelines for

the Northeast

- Maine Woody Biomass Retention Guidelines

- Forest Guild Report on BMP’s in other states

- Wood Fuel Procurement Standards

- Existing Policy

- Heavy Cutting Law and Accepted Management Practices

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series

Scale & Efficiency: If used efficiently, woody biomass could replace portions of the nation’s petroleum use with a local renewable fuel source.

• Used for heat or heat-led CHP, woody biomass is approximately 75% efficient

• Used for generating electricity alone, woody biomass is 20-25% efficient

•Used for making ethanol, woody biomass is 40-50% efficient

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Indu

stria

l Pro

cess

Heat

Building

Heat

CHP T

herm

al

Distri

ct H

eat

Wood

Sto

ve

CHP P

ower

200 M

W C

o-Firing

50 M

W P

ower

Plant

20 M

W P

ower

Plant

Technology

Eff

icie

ncy

Electric

Thermal

Wood to Energy Conversion Efficiency (available technology)

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series

About how much wood might the potential uses consume?

Industrial Uses:

• Bio-oil 50,000-100,000 tons/plant?

• Cellulosic ethanol (at scale) 300,000-1,500,000 tons/plant

• Power plants 200,000-600,000 tons/ plant

Community Uses:

• One school 200-1,000 tons

• 30 Schools 15,000 tons

• All schools in Maine 250,000 tons

• Middlebury College 30,000 tons

• VT State office complex 5,000 tons

• Crotched Mountain Rehab Ctr. (NH Hospital) 3,000 tons

• Public housing (50 units) 450 tons

All in Green Tons

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series Harvesting Capacity:

Challenges: • aging workforce

• access to capital

• shifting scale of operations

Opportunity & Action: • expansion of wood energy

markets

• market development for wood

products vs. lower harvesting

costs

• new financing options (loans,

incentives) for harvesting

equipment

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series Emissions: Minimize emissions and meet or surpass stringent public

health and air quality standards through:

• Efficient combustion technologies

• Best air pollution control strategies

• Best management practices

Opportunity and Action:

• New EPA Area Source Rule for Wood Boilers

• ANR, Dept Education, Superintendents Association,

Health Dept , UVM collaboration on information and

documentation of air effects from existing systems

• Vermont leadership based on long track record of

school wood energy and new development of clean,

efficient district energy systems in towns and cities

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series

Climate Change: Used efficiently and from sustainably managed forests, woody biomass has the potential to displace fossil fuels and reduce atmospheric CO2 emissions.

Forest Management Net Changes in Carbon Stocks Over Time and Over the Landscape Land Use Change Efficiency Fossil Fuel Offsets

Opportunities:

•Invest RGGI funds in efficient biomass energy

technologies

•Develop national carbon policy that links

biomass energy to carbon sequestration role of

forests

•Use state, regional or national carbon registries

to measure, aggregate and verify carbon offsets

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series Vermont Energy Act of 2009

“Standard Offer” for renewables

CHP and District Energy systems using biomass must be at

least 50% efficient

CEDF expanded to include thermal energy projects

Vermont Village Green Renewable Pilot Program • District heating or CHP with renewable fuels in Montpelier and

Randolph

• If biomass, 3rd party certified procurement standards,

management practices and supply chain

• EPA emission standards

• At least $100,000 customer connection incentives

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series National Energy Policy

Develop an “outcome-based” energy policy based

on achieving efficiency, sustainability, renewability

and security - Rather than a “sector-based” approach boosting one technology over

another

Existing public policy is creating market distortions

that are undermining these policy objectives -Must look at all energy sectors

-Must look beyond short-term pricing

-Need to develop a new paradigm – not just new fuels

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series Public Policy to Support Efficient, Sustainable Biomass Energy

Comprehensive National Energy Policy (Electric,

Transportation and Thermal) • All Fuels/All Sector Renewable Energy Standard with

efficiency threshold

• Carbon policy that supports the most efficient uses of biomass

and links to carbon sequestration role of biomass

• Federal incentives, grants and loans

• Inclusive definition of Biomass

• Sustainability requirements

Additional critical issues at the state and/or national

levels: • Sustainable Woody Biomass Supply

• Sustainable Forest Management and Use

• Air Emission Standards and Regulations

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series Applications

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series

The Vermont Experience

• 2 power plants

• 44 Public Schools

• 43 Woodchip / 1 Pellet

• 1 Hospital

• 5 State Office Complexes

• 3 Housing Complexes

• 3 College Campuses

• Dozens of businesses

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series

• Used 23,271 green tons of woodchips to offset

more than 1.425 million gallons of oil

• Saved more than $1.7 million on heating costs (an

average of $40,600 or 46% per school)

In the 2009/10 Heating Season, VT’s 43 Woodchip Heated Schools:

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series School Case Study Barre Town Elementary School

Barre, Vermont

Size - 160,000 sq. ft. / 1000 students

Heating System - Wood chips, converted from electric

heat

Fuel Use - 650 tons/year

Annual Heating Cost - $19,000

Annual Savings – $100,000 per year (1997)

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series

District Heating - Campus

• District heating & cooling system

• Cutting fuel oil usage in half or 40%

reduction (12,500 tons/yr CO2)

greenhouse gas emissions

• Local fuel/local economy – 75 mile

radius and Willow plantation, 20,000

– 21,000 tons chips/year

• At 2008 fuel prices, $2 million

annual cost savings

• CHP – 2-2.5 million killowatt hours

electricity (1/5 campus electricity

needs)

• Student learning opportunity

Middlebury College, Middlebury, Vermont

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series Case Study – Pellets

Commercial Heating

• 46,000 sq. ft. facility

• Two 150,000 Btu TARM boilers

• 25 tons/year ($190/ton = $4,750 last year)

• 30 ton pellet silo

• NH supplier – need local pellet supplier

NRG Systems, Hinesburg, Vermont

Best-in-Class

Community-Scale

Biomass Systems

Case Study Series

What is the future role of wood energy in an oil and climate constrained world?

• Efficient Applications • Sustainable Forestry • Local Energy and Economic Systems • Effective Public Policy

Thank you!

Conclusion

Contact Information Andrea Colnes Policy and Development Director

Biomass Energy Resource Center 43 State Street

Montpelier, VT 05601

802-223-7770 X 129

acolnes@biomasscenter.org